Legal Question in Credit and Debt Law in Massachusetts

Yes, a Homestead doesn't protect from a lien. It protects from a forced sale. In other words, the collection agency's lien will sit there until you either pay it or until the home is sold or refinanced -- it would need to be paid at closing to get a clear title. But on another note, a collection agency can't do any of this until they file a case in court and obtain court approval: either a pre-judgment attachment or a post-judgment execution.